Matt and Sandy reside in a community property state. Matt left home in April 2006?

Question

Matt and Sandy reside in a community property state. Matt left home in April 2006

because of disputes with his wife, Sandy. Subsequently, Matt earned $15,000. Before leaving

home in April, Matt earned $3,000. Sandy was unaware of Matt’s whereabouts or his

earnings after he left home. The $3,000 earned by Matt before he left home was spent on

food, housing, and other items shared by Matt and Sandy. Matt and Sandy have one

child, who lived with Sandy after the husband left home.

a. Is any portion of Matt’s earnings after he left home taxable to Sandy?

b. What filing status is applicable to Sandy if she filed a return?

c. How much income would Sandy be required to report if she filed?

d. Is Sandy required to file

Answer 1

You can use IRS publications 501 (filing statuses), 504 (divorces) and 555 (community property) to research the answers to your test question.

Answer 2

This is mostly a state law question, but "community property" income after a separation is NOT considered "community property" unless the other spouse has some access to the funds.  Based on California law:

a. No, unless she gets access to (some of the) money

b.  Married Filing Separately

c.  $1500

d.  No.